Australian Securities and Investments Commission (Financial Reporting Council) Appointment (No. 3) 2021

Overview

The Australian Securities and Investments Commission (Financial Reporting Council) Appointment (No. 3) 2021, enacted on 16 April 2021, was introduced to address the need for skilled individuals to be appointed to the Financial Reporting Council (FRC). This notifiable instrument was made by Michael Sukkar, the Assistant Treasurer and Minister for Housing and Homelessness, Social and Community Housing, under section 235A of the Australian Securities and Investments Commission Act 2001. The primary objective of this legislation was to ensure the FRC, which plays a critical role in maintaining and improving the quality of financial reporting in Australia, has the necessary expertise and experience to fulfil its functions effectively. The appointment of Tracey Carroll as a part-time member for a three-year period under subsection 235AA(6) of the Act exemplifies the commitment to this objective.

Scope and Application

The Australian Securities and Investments Commission (Financial Reporting Council) Appointment (No. 3) 2021I, issued under section 235A of the Australian Securities and Investments Commission Act 2001, designates Tracey Carroll as a Member of the Financial Reporting Council, effective from the date of signing. This appointment is made by Michael Sukkar, who holds the positions of Assistant Treasurer, Minister for Housing, and Minister for Homelessness, Social and Community Housing. Under subsection 235AA(6) of the Act, this appointment is set to be part-time and will last for a period of three years. The legislation pertains specifically to the appointment of individuals to the Financial Reporting Council, an entity established to oversee financial reporting standards and practices in Australia. The appointment's jurisdictional reach is confined to the Commonwealth, as it is a federal matter governed by the Australian Securities and Investments Commission Act 2001. There are no stated exclusions, exemptions, or thresholds in this particular instrument, and the application of the Act is direct without the need for subordinate instruments to extend or restrict its scope.

Key Provisions

The Australian Securities and Investments Commission (Financial Reporting Council) Appointment (No. 3) 2021I outlines the appointment of Tracey Carroll as a Member of the Financial Reporting Council, effective from the date of signing, 16 April 2021. This appointment is made by Michael Sukkar, who holds the positions of Assistant Treasurer, Minister for Housing, and Minister for Homelessness, Social and Community Housing, under section 235A of the Australian Securities and Investments Commission Act 2001. The appointment is specified to be on a part-time basis, lasting for a period of three years, as determined under subsection 235AA(6) of the same Act. The Act imposes certain obligations and requirements on Tracey Carroll as a Member of the Financial Reporting Council. As part of this role, she will be expected to contribute to the Council's efforts in overseeing the quality of financial reporting and audit services in Australia. This includes ensuring compliance with accounting standards, auditing practices, and other regulatory requirements that are pertinent to the financial reporting industry. Her part-time role will necessitate participation in Council meetings, the provision of expert advice, and collaboration with other Council members to achieve the Council's objectives. Failure to comply with the obligations and requirements outlined by the Act may result in various consequences. While the specific offences and penalties are not detailed in the notifiable instrument, breaches of the Act could potentially lead to legal actions under the Australian Securities and Investments Commission Act 2001. Such actions could include fines, the imposition of civil penalties, or other enforcement measures deemed appropriate by the courts or regulatory bodies. The maximum penalties for breaches under the Act can be significant, reflecting the importance of the Financial Reporting Council's role in maintaining the integrity of the financial reporting system.